Prairie State Wire

The Department of Labor and the Department of Revenue in Illinois have released drafts for new rules regarding temporary workers and a lease tax. These drafts aim to implement requirements from the Day and Temporary Labor Services Act and the Tangible Personal Property Lease Tax, as published in the Illinois Register.

The proposed Tangible Personal Property Lease Tax rules span pages 24 to 216, with key details located between pages 44 and 52. The Day & Temporary Labor Services rules are outlined from page 135 to page 164.

The General Assembly enacted the lease tax on tangible personal property through Public Act 103-592 (Article 75) in May 2024, effective January 1, 2025. The draft rules aim to clarify when this lease tax is applicable or not, such as distinguishing between a service sale and a tangible property lease.

Additionally, revisions were made to the Day and Temporary Labor Service Act under Public Act 103-437, which introduced new wage and reporting mandates for staffing agencies. Following legal challenges, lawmakers revised these changes with Public Act 103-1030. The Department of Labor had previously withdrawn its initial rulemaking proposal due to clarity concerns raised by NFIB Illinois.

Administrative rules are designed to clarify statutory requirements without adding extra burdens on affected individuals and businesses. During the first notice period, public comments are accepted on these proposed rules. Afterward, a second notice is filed, followed by a review by the Joint Committee on Administrative Rules (JCAR). If JCAR raises no objections, the rules will be published in the administrative code and become binding.

Small businesses impacted by these changes are encouraged to review the proposed rules carefully. They can direct their questions or concerns to NFIB Illinois State Director Noah Finley at noah.finley@nfib.org or call at 217-504-8868.